He said the company will limit the grey market in China, where increasing numbers of jewellery pieces are imported to China from other markets and sold online.

“This is a very Chinese problem. We see that this has accelerated over the past months and we will do what we can to limit it,” Friis said.

He said Pandora will also increase spending on marketing and aims to return to positive like-for-like sales growth in China this year.

Like-for-like sales fell in China, although revenue still rose 16 percent in local currencies compared with the year-ago quarter.

First-quarter earnings before interest, tax, depreciation and amortisation (EBITDA) came in at 1.67 billion Danish crowns, undershooting the 1.75 billion estimated by analysts polled by Reuters.

Shares in Pandora fell 10 percent by 0738 GMT, on track for the worst daily performance in four months.

Its more developed markets were also weak, with UK sales flat and U.S. sales dropping 8 percent in local currencies in the quarter.

Pandora, which produced 334,000 pieces of jewellery each day on average in 2016, hopes to boost sales by accelerating the number of designs being launched and increasing the number of self-owned stores rather than franchises.

The initial reception to its newest gold-plated ‘Shine’ collection, launched in March, had been “encouraging”, but Friis declined to provide details on sales.

Pandora launched 150 new products during the first quarter and plans an additional 500 for the rest of the year.

The weaker retail environment is partly due to a shift by younger consumers away from jewellery and towards buying technology and spending on experiences.

Sales rose 6 percent, in line with the company’s target for first-quarter sales slightly below the full-year forecast for 7 to 10 percent, which it kept unchanged.

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Jewellery maker Pandora slashed its 2018 sales outlook for the second consecutive quarter after posting disappointing profits on Tuesday, saying it will review its strategy as it struggles to regain investor confidence.

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